Servcorp (SRV) investor relations material

Executive summary

• Achieved record financial results in FY26, with underlying net profit of $87 million, a 24% increase year-over-year, and all key indicators surpassing upgraded profit guidance, supporting ongoing global expansion and long-term growth.

• Paid 56 consecutive dividends since listing, totaling $444 million, 2.7x total capital raised.

• Expanded from 30 to 111 locations, maintaining over $150 million in cash and at least $20 million in real estate assets.

• Five-year compound annual profit growth above 20% in both underlying and statutory NPBT.

• Continued disciplined execution and a clear strategy, with a focus on innovation, technology, and premium workspace solutions.

Financial highlights

• Statutory revenue rose 4% year-over-year to $367.5m; underlying operating revenue reached $355.9m, up 4%.

• Underlying NPBIT grew 24% to $87.0m; statutory NPBT increased 29% to $80.9m.

• Underlying free cash climbed 20% to $101.9m; unencumbered cash at $152.4m.

• EPS increased from 11.4c in FY21 to 66c in FY26; DPS grew from 18c in FY21 to 32c in FY26.

• Operating margin expanded to 18.5%, up 150 bps year-over-year.

Outlook and guidance

• FY27 guidance: Underlying NPBIT expected between $85.0m and $90.0m; underlying free cash not less than $105.0m.

• Dividend for FY27 not expected to be below 34.0c per share.

• Majority of increased cash flow and profit from recent investments expected to materialize in FY28.

• Targeting to surpass $95 million underlying profit in FY28 with new locations and real estate ventures.

• Focus on portfolio consolidation, occupancy, pricing discipline, and measured expansion with at least six new floors planned.